{"id":19387,"date":"2021-03-22T10:58:21","date_gmt":"2021-03-22T05:28:21","guid":{"rendered":"https:\/\/plyinsight.com\/?p=19387"},"modified":"2021-05-11T13:54:49","modified_gmt":"2021-05-11T08:24:49","slug":"government-may-consider-effect-on-industries-effect-on-industries-before-imposing-duties","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/government-may-consider-effect-on-industries-effect-on-industries-before-imposing-duties\/","title":{"rendered":"Government May Consider Effect on Industries Effect on Industries before Imposing Duties"},"content":{"rendered":"

On the day the union budget was presented, the government raised import duties on a number of items to protect domestic industry, especially micro, small and medium enterprises (MSMEs). The government also reduced import duties in a few items and suspended the levy of anti-subsidy countervailing duty (CVD) on some steel items to help MSMEs. The government also proposed to strengthen certain provisions relating to the levy of ADD and CVD.<\/p>\n

As a rule, tinkering with the duty rate structure complicates tariffs, gives rise to classification disputes and encourages lobbying. That is why successive finance ministers moved towards a single rate for all items in a chapter. However, for the last few years, selective changes have been made in the rates to raise revenues and increase protection to some industry segments.<\/strong><\/p>\n

Nevertheless, this time, in a limited way, the government has recognized that high import duties on primary products adversely impact the downstream user industries, especially MSMEs.<\/strong><\/p>\n

This is the first time that ADD and CVD have been suspended to help user industries. The extent to which this will help is unclear. The global and domestic steel prices remain high and India mostly imports steel from countries with which it has free trade agreements. Reportedly, investigations have been launched following allegations of cartelization by domestic steel products. The Finance Bill 2021 proposes to align ADD and CVD provisions relating to duty free import of inputs by export oriented units and units in special economic Zones that are subsequently sold in domestic tariff area (DTA) or used in the manufacture of products sold in DTA. For the first time, anti-absorption provisions are introduced ot counter the effect of price reduction by foreign suppliers that effectively take away the protection to domestic industries through imposition of ADD or CVD can be from the date of initiation of anti-circumvention investigations. The proposals include imposition of ADD for less than five years and limit the period of any temporary revocation to one year. From July 1 onwards, final findings on any review of ADD must be given at least three months before the expiry of ADD under review. The rules relating to safeguard measures are being amended to establish the manner and procedure for investigating cases of imports in increased quantity that cause injury to domestic industry, and imposition of tariff rate quotas.<\/p>\n

Henceforth, the government may consider the likely effect on user industries before imposing ADD or CVD.<\/p>\n

Courtesy: TNC Rajgopalan<\/p>\n

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On the day the union budget was presented, the government raised import duties on a number of items to protect domestic industry, especially micro, small and medium enterprises (MSMEs). The government also reduced import duties in a few items and suspended the levy of anti-subsidy countervailing duty (CVD) on some steel items to help MSMEs. […]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1057],"tags":[],"class_list":["post-19387","post","type-post","status-publish","format-standard","hentry","category-march-news-2021"],"yoast_head":"\nGovernment May Consider Effect on Industries Effect on Industries before Imposing Duties - PLY INSIGHT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plyinsight.com\/hi\/government-may-consider-effect-on-industries-effect-on-industries-before-imposing-duties\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government May Consider Effect on Industries Effect on Industries before Imposing Duties - PLY INSIGHT\" \/>\n<meta property=\"og:description\" content=\"On the day the union budget was presented, the government raised import duties on a number of items to protect domestic industry, especially micro, small and medium enterprises (MSMEs). 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